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This Week in Pricing > 6/6/15

pricingnews-WeeklyThis Week in Pricing is a recap of the week’s best pricing focused news, strategy expert and technology leader’s thought leadership, industry news and events, and resources for pricing professionals.

This Edition is brought to you by: value innoruption final 0612 rev

 

 

 

Value Innoruption Advisors

Founded by Dr. Stephan Liozu, Value Innoruption Advisors provides training and consulting resources for organizations interested in embedding value-based methodologies in their go-to-market strategies related to innovation, marketing, pricing, and sales. Value Innoruption Advisors offers two popular value and pricing management certification programs – Customer Value Modelers™ (CVM™) and Change Agent in Pricing™ (CAP™).

Click a link below to learn more…

Headlines

For The Pricing Of New Cholesterol Lowering PCSK-9 Drugs, Does Dose Size Matter? | Forbes

For The Pricing Of New Cholesterol Lowering PCSK-9 Drugs, Does Dose Size Matter? | Forbes

So, what is the concern? As is usually the case in this day and age in medicine, it is the projected price of these new medicines that is causing an uproar. These drugs are costly to make and need to be injected to be effective. While the developers of the most advanced of these drugs […]

 

How Bunnings’ prices are designed to nail customers | The New Daily

How Bunnings’ prices are designed to nail customers | The New Daily

A tentative Google suggests, um, well, not always. Take a 33 litre cooler. At Bunnings it’s $54.95, but nearly half the price at Masters at $30*. Comparing items by brand at Bunnings can be tricky because they stock most items exclusively. While those two coolers were different brands, here’s an example of an identical item which costs far […]

 

Golf-Club Price Wars Are Raging and No One’s Bag Is Safe | Bloomberg Business

Golf-Club Price Wars Are Raging and No One’s Bag Is Safe | Bloomberg Business

The war involves prices for some of the timeless staples of both developed and emerging economies: golf clubs. And as such, maybe it really does serve as a case study to explore the state of the consumer economy. Or maybe it’s just a cheap excuse to write about golf instead of markets on a Monday […]

 

How to Price Golf … Dynamically | Pragmatic Pricing

How to Price Golf … Dynamically | Pragmatic Pricing

Every once in a while, a company in a traditional industry uses a new pricing model.  Troon North Golf is one of these companies. Typically when you go to a golf course, there is a flat fee.  Sometimes their weekend price is more than their weekday price, but that’s about as far as it goes.  Troon […]

 

Woolworths faces multimillion-dollar hit from private label price cuts, brokers say | The Sydney Morning Herald

Woolworths faces multimillion-dollar hit from private label price cuts, brokers say | The Sydney Morning Herald

Aldi’s brands are 6 per cent cheaper than Coles’ own-brand range, but Coles’ brand prices are on average 34 per cent cheaper than Woolworths’ Select brand. Advertisement Morgan Stanley analyst Tom Kierath​ says the pricing discrepancy has contributed to consumer perceptions that Woolworths’ prices are higher than those of rivals across the board. “Private brand strategies are critical for the Australian supermarkets, as consumers view […]

 

Penetration Pricing: How Costco and Kroger Co Dominate Grocery Retail | The Motley Fool

Penetration Pricing: How Costco and Kroger Co Dominate Grocery Retail | The Motley Fool

Apple’s iPhone is a great example. It carries a higher selling price than that of many other smartphones, but enough shoppers pay the premium because they value the innovation and design characteristics of the Apple devices over competing brands. Penetration pricing at work Returning to our grocery example, you can see penetration pricing at work […]

 

WSJ: Apple pricing music service at $10/month, updating iTunes Radio | Seeking Alpha

WSJ: Apple pricing music service at $10/month, updating iTunes Radio | Seeking Alpha

Apple (AAPL +0.4%) is expected to unveil its new subscription music streaming service (a revamped version of the existing Beats Music service) at the June 8-12 WWDC conference, the WSJ reports. It adds the service will be priced at $10/month, on par with Spotify and many other rival services. Prior reports indicated Apple was hoping […]

 

Is demand pricing coming to Disneyland? | LA Times

Is demand pricing coming to Disneyland? | LA Times

Walt Disney Parks and Resorts may be considering charging more for high-demand days during summer, the Christmas holiday and spring break, and less for off-peak days, a survey the company sent to park visitors suggests. In an online survey sent to annual pass holders, the Walt Disney Co.’s theme park operation sought opinions on a […]

 

Watch: Uber driver fakes surge pricing to spike fares | UPI.com

Watch: Uber driver fakes surge pricing to spike fares | UPI.com

Liz Price, a Los Angeles area resident who frequently uses Uber services, said she believes some anomalies she noticed with the Uber app may have been a result of someone using the technique to raise her fare. “It’ll show that the car is actually moving on the screen… but it just stops and then it’ll […]

 

12 Questions to Guide Your Pricing Model Transformation | Marketing Agency Insider

12 Questions to Guide Your Pricing Model Transformation | Marketing Agency Insider

“The future belongs to dynamic agencies with more efficient management systems, integrated services, versatile talent, value-based pricing models, a love for data, and a commitment to producing measurable results.” — The Marketing Performance Blueprint Pricing can have a positive impact on productivity, accountability, client performance, agency growth and profits. Yet, many agencies still rely on billable […]

 

Dynamic Pricing Can Lower Ticket Revenues If Misused | Forbes

Dynamic Pricing Can Lower Ticket Revenues If Misused | Forbes

Dynamic pricing is all the rage in analytics-based live event circles. The ticket selling system, by which prices in the primary market automatically fluctuate based on supply, demand, time, team performance, and a number of other factors, is currently employed by 21 MLB teams. In a recently released research paper finalist for the 2015 Sloan Sports Analytics […]

Are you charging your customers enough? Why companies fail at premium pricing | Financial Post

Are you charging your customers enough? Why companies fail at premium pricing | Financial Post

The problem with focusing on market share is that growth is often achieved at the expense of competitors. “Switchers” are the most difficult customers to attract, frequently requiring discounted pricing or free trials, and are also the most difficult to retain. The result is generally a temporary increase in market share that does not translate […]

 

Shadow Pricing, Highway Robbery, and the Price of Drugs | Medpage Today

Shadow Pricing, Highway Robbery, and the Price of Drugs | Medpage Today

It’s often difficult to pinpoint the moment a revolution starts, but when it comes to the issue of drug pricing, it’s quite possible that we’ll look back at Dec. 6, 2013, as the day that everything changed. That was the day that Gilead’s Sovaldi was approved for sale by the FDA. Sovaldi’s launch — and […]

 

Lack of clarity on fees causes one in four complaints, major LeO survey finds | Legal Futures

Lack of clarity on fees causes one in four complaints, major LeO survey finds | Legal Futures

LeO suggested that firms give clients a range of prices, for example in a litigation case, depending on whether the case was resolved by early settlement, mediation or at trial, to ensure clients had a “best and worst case scenario”. Although it had not seen “any issues around DBAs or ‘no win, no fee’ funding […]

 

The 5 most important questions to ask before you price your SaaS product | ProductNation

The 5 most important questions to ask before you price your SaaS product | ProductNation

Over the last few weeks I had a chance to review 89 of the companies to understand their free to paid conversion and also a chance to talk to 13 companies. What I learned was that time spent on the pricing page was a key indicator of conversion and you can A/B test your […]

 

How to Avoid the Pricing Race to the Bottom | PROFITguide.com

How to Avoid the Pricing Race to the Bottom | PROFITguide.com

“Maybe we are shopping on discount, but at least half the reason is [grocers] are giving us that opportunity,” says Guelph, Ont.-based grocery consultant Kevin Grier. “The reason is the only way they can compete on is price, at least on the consumer packaged goods.” Overall, Grier estimates grocery sales went up less than 1% […]

 

Gouging Loyal Customers? New Ban on Price Optimization in Car Insurance Quotes | NerdWallet

Gouging Loyal Customers? New Ban on Price Optimization in Car Insurance Quotes | NerdWallet

The memo, circulated to the state’s insurers, said optimization “involves analysis and incorporation of data not related to expected cost for risk characteristics. For example, such data may include the prior year changes in premium and whether policyholders renewed subsequent to such change. Therefore, the use of price optimization results in rates that are unfairly […]

 

The Price Wars From All Sides | Life Science Leader

The Price Wars From All Sides | Life Science Leader

On my first road assignment as an industry journalist in 1987, I visited Burroughs Wellcome in North Carolina’s Research Triangle Park (RTP). I had just attended the annual PMA (now PhRMA) Meeting, where many people in the industry crowd urged me to speak with the company about its pricing. BW had announced an estimated $22,000 […]

 

What Your Product Pricing Says About Your Brand | TheGenieLab

What Your Product Pricing Says About Your Brand | TheGenieLab

And another experiment by MIT and the University of Chicago showed that when a dress was sold at $34, $39 and $44 on different days, the $39 dress sold best – even though it was $5 more expensive than the cheapest option. Put simply, dropping a penny to make a left digit smaller makes products […]

 

You Can Earn As Much Or More From A Pay-What-You-Want Model As From A Fixed Price Model | Forbes

You Can Earn As Much Or More From A Pay-What-You-Want Model As From A Fixed Price Model | Forbes

Summary: We conducted a large experiment to test pricing strategies for our book and came to some very surprising findings about allowing customers to pay what they wanted. Specifically, we found strong evidence that we should let customers pay what they want, which would help us earn more money and more readers when compared with […]

 

J.C. Penney Facing Lawsuit Over False Sale Prices (NYSE:JCP) | sleekmoney

J.C. Penney Facing Lawsuit Over False Sale Prices (NYSE:JCP) | sleekmoney

After many years of accusations of artificially inflating prices just to mark them back down to create the appearance of a “sale” price, J.C. Penney is facing a lawsuit over the practice. J.C. Penney has been hit with a class-action lawsuit in California federal court over its pricing strategies. The lawsuit calls the company’s pricing […]

 

 

Article: A chat with a Six Sigma Master Black Belt on Pricing | Strategic Pricing Associates, Inc.

Article: A chat with a Six Sigma Master Black Belt on Pricing | Strategic Pricing Associates, Inc.

The emergence of the Pricing Professional In the coming months, Greg and the SPA team will be developing a program for training others in a Six Sigma Black Belt of Pricing program. Here’s why. There is no Bachelor’s Degree in Pricing Leadership. Everyone who comes into the role comes from a different perspective. Some from […]

 

Events

Conference: Strategic Pricing Conference | SPA

When: June 12, 2015

Where: Las Vegas, NV at the Vdara Hotel & Spa at Aria

Learn how leading manufacturing and distribution executives have unlocked the keys to faster growth, stronger customer relationships, and market-leading profitability with SPA’s proven strategic pricing processes and technology. Event Overview Equal parts strategy and practical tactics, this complimentary Strategic Pricing Executive Overview event […]

 

Webcast: Improving Margins Through a More Strategic Approach to Pricing | SPA

When: July 15 2015 2:00 PM Eastern

Register to attend our webcast where a SPA client will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to improve margins through a more strategic approach to pricing. To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the […]

 

Webcast: Increasing Prices and Margins Without Sacrificing Sales Volume | SPA

When: August 12 2015 2:00 PM Eastern

Register to attend our webcast where a SPA client will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to increase prices and margins without sacrificing sales volume. To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing […]

 

Webcast: How to Change the Pricing Culture in Your Company | SPA

When: September 23 2015 2:00 PM Eastern

Register to attend our webcast where a SPA client will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to change the pricing culture in their company. To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing […]


The following is a daily-dose of pricing cartoons and quotes, enjoy…

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“Price is what you pay. Value is what you get.”

     – Warren Buffett

 

Pricing Resources

Explore our archives of valuable pricing resources including:

Training: Pricing Workshops | Stephan Liozu

Value-Based Pricing Workshop This unique workshop is grounded in the latest value-based pricing science following several years of academic research. The content combines theoretical presentations and practical exercises to deliver a total knowledge package on how to design and executive successful value-based pricing programs. Download the Value-Based Pricing Workshop PDF   Value-Based Selling & Negotiation for Value Workshop […]

Pricer’s Points Blog Series

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